Interim Results

30 September 2011

Renewable Energy Holdings plc

("REH", "the Company" or "the Group")

Interim results for the six months ended 30 June 2011

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of European wind farms, is pleased to announce its interim results for the six months ended 30 June 2011.

Highlights

·; Loss before tax of £11.7 million due to a non cash £10.8m Balance Sheet impairment from Carnegie Wave Energy market valuation (2010 H1: loss of £1.1 million)

·; Sustained reduction in operating costs in the six months to 30 June 2011 of £669,432 (2010 H1: £1.1 million).

·; 30MW wind farm at Kobylany, Poland now fully permitted for the use with larger turbines than originally planned

·; 81MW Welsh wind farm project continuing to progress through the planning process, with the permitted value per MW significantly increasing during the period

·; Carnegie Wave Energy Limited - full scale commercial testing was carried out successfully and with results meeting expectations. Next generation CETO 4 unit manufactured and delivered to Reunion Island, supported by French Government grant funding

Commenting on the results, Mike Proffitt, Chief Executive of REH, said:

"The first half of 2011 has seen us continue to deliver against our strategy of pursuing and progressing wind energy projects through the planning and permitting process thereby driving value for our shareholders. This strategy has been realised through the important developments at our Polish and Welsh wind farm projects.

"The Board of REH will continue to seek the best ways to leverage its assets in order to continue to drive shareholder value in the coming period and beyond as well as maintaining a tight control of costs."

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Chairman's Statement

The first six months of the year has seen us continue to deliver upon the revised strategy outlined in our 2010 Annual Report.

Whilst the permitting process has taken longer than we hoped, our 30MW wind farm at Kobylany, Poland is now fully permitted for the use of larger turbines than originally planned. This increases the potential electricity generation volumes, and hence the value of the site. Additionally, in the time that this has taken, the market for wind power in Poland has significantly improved - in particular, the terms being made available for long term power purchase agreements. This has translated into a significant rise in the value of a MW of permitted wind energy, not yet built. Accordingly, while we are now close to launching the project, the Board is also examining all available options in order to drive maximum shareholder value from this asset.

Development of our 81MW Welsh wind farm project continues to progress. Revised formal public consultations meeting the Infrastructure Planning Commission's ("IPC") requirements have been completed, and statutory consultations are ongoing. Based on this work and revised data, our application to the IPC for Development Consent is likely to be submitted in early 2012, with a decision expected late 2012. Again, the planning process has proved to be very detailed and time consuming but I am pleased to note that the value of a MW of wind in this area, permitted but not yet built, has more than doubled in the last three years, making this project even more attractive, with a positive arbitrage available to the Company. The Board will not let an early opportunity to capture this value pass by if such a proposition is achievable.

Our investment in Carnegie Wave Energy Limited ("CWE"), and more particularly in the CETO Wave Energy Technology, continues to have the support of the Board and potentially offers significant value. Recent trials of a full scale prototype deployed in waters off the coast of Freemantle, Western Australia, proved successful both from a mechanical and generation perspective, with the data collected matching pre-test expectations. Further design improvement is underway to increase the power output of each unit. Unfortunately, give turbulent financial markets the market price of CWE shares has been depressed for a prolonged period. The Board have confidence in the CETO technology and believe that the current price is not reflective of the true market value of the technology. Nonetheless, in order to be compliant with International Financial Reporting Standards the Company has recognised an impairment of £9,481,047 in the period, bringing the Balance Sheet carrying value of this asset into line with market value.

Of course, the situation remains that the Company has no revenue-producing assets. In these circumstances, we remain committed to sustaining the major reduction in running costs the Company has already achieved. In the six months to 30 June 2011 our Administrative expenses fell to £669,432, a reduction of £462,543 on the comparable period in 2010.

We are accordingly poised to realise value for shareholders from our three main assets whilst sustaining a rigorous control of costs.

Sir John Baker

Chairman

These interim financial statements were approved by the Board of Directors and authorised for issue on 28th September 2011 and they were signed on its behalf by:

John Baker, Chairman Michael J. Proffitt, Director

1. Basis of preparation

This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively IFRSs).

The principal accounting policies used in preparing the interim results are those the Company expects to apply in its financial statements for the year ended 31 December 2011 and are unchanged from those disclosed in the Company's audited Annual Report and Financial Statements for the year ended 31 December 2010 which are available at www.reh-plc.com.

During the period, the Board has reclassified Development expenditure seperately in the Income Statement whereas formerly these costs were included within Administrative expenses.

While the financial information included in this consolidated interim financial information has been prepared in accordance with the AIM Rules for Companies and with IFRSs, this interim consolidated financial information does not itself contain sufficient information to comply fully with IFRSs. As permitted, the Company has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements.

The financial information for the six months ended 30 June 2011 and 30 June 2010 is unaudited and does not constitute the Company's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2010 has, however, been derived from the statutory financial statements for that period. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 15.4 of the Isle of Man Companies Act 1982.

2. Segment Information

The Group has five main reportable segments:

·; Head office - this segment represents the operation of the Group's head office facility on the Isle of Man.

·; CETO development - this segment represents the remainder of the Group's operations in Perth, Western Australia, following the sale of the CETO intellectual property in 2009.

·; Windfarms Poland - this segment represents the windfarm under construction at Kobylany.

·; Windfarms Wales - this segment represents the windfarm under development at Sweetlamb.

·; Landfill gas Wales - this segment represents the landfill gas operations which were disposed of in February 2010.

During the period the board reclassified its reporting segments. The classification of assets and liabilities, income and expenses has been made on the basis of project activity rather than the legal entity of the transactions and balances.

During the period, the Board have reclassified Development expenditure on its own line in the Income Statement whereas formerly these costs were included within Administrative expenses.

2. Segment Information (continued)

2. Segment Information (continued)

3. Impairment of available for sale financial asset

Carnegie Wave Energy Limited

At 30 June 2011 the Group owns 232,600,000 shares, which represents a 25.8% stake in Carnegie Wave Energy Limited, ("CWE"). The Group's investment in CWE meets the definition of an associate and is accounted for using the equity method. Despite the Board's confidence in CWE's CETO technology, the fact that CWE's market value has declined significantly over a prolonged period has been considered by the Board to be an indicator that its investment in CWE may be impaired in accordance with IAS 36 "Impairment of assets".

In accordance with IAS 36, the Company's investment in associate has been impaired to £11,695,479, the fair value of the shares at 30 June 2011. The impairment expense of £9,481,047 has been recognised in the Consolidated Income Statement as "Impairment of associate".

4. Discontinued operations

Windpark Kesfeld and Windpark Kirf

On 28 September 2010 the Group completed the sale of its entire interests in Windpark Kesfeld and Windpark Kirf to Allianz Renewable Energy Management GmbH for total cash consideration of up to €39.7 million,comprising €37.5 million of initial consideration and €2.2 million of deferred consideration. As at 30 June 2011 the Company had received €2.1 million of deferred consideration and anticipates receiving the remaining €100,000 in the subsequent months. Until September 2012 a €650,000 Performance Bond is in place and has been included within Restricted Cash. Upon the Performance Bond expiring the restriction over this cash will be released.

Gwynt Cymru Limited

On 26 February 2010 the Group sold its shares in Gwynt Cymru Limited to Potters GCL Limited for total cash consideration of up to £2.75 million. £2 million was received by the Company upon completion of the sale and the remaining £750,000 is deferred consideration. Of the £750,000 deferred consideration, £250,000 is due on 31 January 2012, and £500,000 is due, on a sliding scale, contingent in the event that the purchaser increases the output capacity of the site. The deferred contingent consideration was derecognised in the second half of 2010 and the remaining deferred consideration of £250,000 is included within "Trade receivables and other assets" with a fair value of £236,480 at 30 June 2011.

Accordingly, the Group's investments in Windpark Kesfeld, Windpark Kirf and Gwynt Cymru Limited have been presented as discontinued operations in the relevant periods in accordance with IFRS 5 "Non-current assets held for sale and Presentations of Discontinued Operations".

4. Discontinued operations (continued)

*-'Expenses other than finance costs' for Kesfeld include an impairment charge of £1.3m

5. Loan payable

Subsequent to the period end the Company's £2,500,000 loan with Utilico Investments Limited (formerly Utilico Limited), a related party who own 28.71% of the shares in the Company, was renegotiated. The repayment date of the loan has been changed to 31 July 2013.

Independent review report to Renewable Energy Holdings plc

Introduction

We have been engaged by the company to review the consolidated interim financial information in the half-yearly financial report for the six months ended 30 June 2011, which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial informaion.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the company's annual financial statements.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The interim financial information included in this half-yearly financial report have been prepared in accordance with the basis of preparation set out in note 1.

Our responsibility

Our responsibility is to express to the company a conclusion on the interim financial information in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the International Auditing and Assurance Standards Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the basis set out in note 1 and the AIM Rules for Companies.

PricewaterhouseCoopers LLC

Chartered Accountants

Douglas, Isle of Man

28th September 2011